LISTED chemical distributor SBS Philippines Corp. posted a net income of P1 billion last year due to gains from the divestment of some shareholdings and assets.
SBS Philippines said its net income last year grew more than six times to P1 billion from P159 million in 2015 on gains from the divestment of interests in an associate and certain investment assets, translating to a full-year earnings per share of P0.84 from P0.18 in 2015.
Revenue surged 97 percent to P1.97 billion from P1 billion in 2015 on the strong rise in its core chemical business and contribution from its investments in property investment firms.
“Our very strong balance sheet and excess cash gives us the ability to create more value. We will continue to take action to make SBS bigger and better,” Necisto U. Sytengco, SBS Philippines chairman and founder, said in a statement.
Sales from its chemical business grew 6.6 percent to P1 billion on higher volume sales of raw material ingredients for feeds, cosmetics and pharmaceutical products.
Some 35 percent of the chemical sales were from the food raw materials sector, followed by industrial raw materials (31 percent), pharmaceutical (23 percent), and cosmetics (9 percent).
Gross profit declined to P208.2 million from P257.8 million due to sluggish demand for industrial products, change in product mix involving lower margin feed ingredients, and depreciation of the local currency against the US dollar.
The reduced margin was cushioned by lower operating expenses and increase in other income, resulting in operating profit of P195.4 million.
This year, SBS Philippines said it aims to grow its volumes in the food and beverage, homecare and industrial segment. It also intends to seek business and acquisition opportunities and to diversify to generate attractive returns and additional income streams.
SBS Philippines is one of the major chemical distributors in the Philippines, supplying more than 1,800 customers with over 3,000 chemical products sourced from more than 500 suppliers.
The company has a network of 15 warehouse facilities in five different sites in greater Manila area and Bulacan Province with a storage capacity exceeding 18,000 metric tons.